Online Casino News and Information

Nevada and in particularly Las Vegas is pushing to regulate online gambling either within the state or on a national level. Many U.S. land based casinos are already making partnerships with online gambling companies to get ready for what they hope is the inevitable passing of some kind of U.S. regulations.

Not everyone however seems to be on the online gambling bandwagon. Sheldon Adelson, chief of the industry’s largest publicly traded company, says he opposes online gambling because he doesn’t think the software available can keep under age people from gambling.

A company spokesperson confirms however this is a personal stance from Adelson and not a formal stance from the company and its worldwide resorts in Las Vegas, Macau, Singapore and Bethlehem, Pa. Other industry companies like the Caesars Entertainment Corp. and MGM Resorts International have openly backed the push to legalize online poker.

Adelson shared his view with Frank Fahrenkopf, CEO of the American Gaming Association. Fahrenkopf said in a statement:

“Sheldon has long had concerns about this issue, and it is perfectly within his right to make this decision. However, the AGA, at the direction of our board of directors, will continue to support federal legislation to allow states to license and regulate online poker.”

Though there is not a real consensus among the top casino industry but their top lobbyist has taken a step away from neutral and are now actively trying to lobby for federal legislation that would regulate online gambling or at least online poker.

A new study in Iowa by the Racing and Gaming Commission projects if lawmakers choose to legalize online poker within the state, operators could make between $13-60 million dollars a year.

The report goes on to say that if poker operators would be levied the same tax level that is currently being levied to most of the state-licensed riverboats and racetrack-casinos that the state gambling revenue would increase $3 million and $13 million annually.

According to the Racing and Gaming Commission administrator Jack Ketterer,

“Our goal was fact-finding and information-gathering that could help the legislators who might face bills to be better informed so they could make a public policy decision that was in the best interest of Iowa.”

Ketterer thinks the Racing and Gaming Commission would be capable of regulating online poker activity in the state if it should become legal in Iowa.

“How strictly it could be regulated might differ in different legislators’ eyes,” Ketterer said. “Our goal was to inform them as to what’s out there, what is the status of the industry right now, and then they can hopefully draw conclusions as to whether this is something that can or can’t be regulated to their personal desire and that they would be comfortable with.”

Projections using the commission’s research show that the number of online poker players at between 34,500 and 172,500. Gambling industry officials claim 150,000 Iowa players are playing online poker currently via illegal offshore poker sites.

One of online gambling’s biggest supporters has announced he will not seek another term in office. Rep. Barney Frank (D-MA) announced that he will not seek reelection in 2012.

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in a last moment add-on to must pass legislation. This angered Rep. Frank and ever since he has fought for online gambling and has sponsoring of several pieces of legislation to legalize and regulate online gaming in the United States.

Some worried that this would hurt representation of online gambling in the United States and even that he would consider becoming a lobbyist for the online gambling industry. Frank denied the thought of becoming a lobbyist and gaming organizations came out with statements that together helped calm the speculations.

Frank stated “My intention is to do some combination of writing, teaching, and lectures.”

Rep. Frank is the top ranking Democrat in the House Financial Services Committee and former Chairman. As Chairman, Frank pushed his online gambling legislation through the Committee but they never came up to vote in the full Congress.

He has proposed several bipartisan pieces of legislation since 2006 involving online gambling and what he saw as the fight for personal freedom for U.S. citizens. Recently he testified again in support of online gambling at the House Subcommittee on Commerce, Manufacturing and Trade hearing and the current proposed legislation offered by Rep. John Campbell (R-CA) and Rep. Joe Barton (R-TX).

The Poker Players Alliance issued this statement from Executive Director John Pappas:

 “Congressman Barney Frank has been a champion for Americans’ civil liberties. His longtime support for the freedom of adults to play online poker in a safe and regulated environment has been invaluable to our organization and to the interests of the entire poker community. The introduction and passage of H.R. 2267 through the House Financial Services Committee last year helped build the foundation for the online poker legislative proposals under consideration today.

The poker playing community will continue to build on the foundation established by Congressman Frank and we will forever be grateful for his fight for our personal freedoms. Thanks to Congressman Frank’s leadership our issue has become the topic of serious discussion throughout Capitol Hill. Even with his pending retirement, we are better positioned than ever to succeed legislatively. We have more Congressional champions and momentum now, more than ever.”

A complaint has been filed by online gambling companies with the European Union (EU) regulators against the new Greek revenue-raising law. The new law, according to the complaint would hinder betting firms who would want to start services in Greece.

The European Gaming and Betting Association which represents some of the big names in online gambling including Bwin.Party Digital Entertainment Plc, Unibet Group Plc and the Remote Gambling Association has asked the EU to address the Greek actions that would require new operators to be based in the country as well as process financial transactions through Greek banks.

Those licensed operators already operating in Greece may also potentially pay their taxes on revenue retroactive to Jan. 1. 2010 until the new licenses have been awarded. This is seen to be equivalent to a market entry fee that all new operators currently not licensed in Greece would have to pay.

The Greek Government also granted the OPAP a ten year extension on its license. OPAP in the current monopoly gambling operator for offline games and pays no gambling tax on its activities. This decision, seemingly made to keep OPAP monopoly intact, has also been challenged with the EU as online operators will be required to pay 30% tax.

According to a Thursday article on CNNMoney, a deal was reached between Groupe Bernard Tapie (GBT) and the US Department of Justice.  The article claimed that this deal was brokered by the DOJ and cleared the way for GBT to purchase Full Tilt Poker.  The article however was taken down quickly after it was put up.

An article on CBS news however has also posted an AP story that also claims that a preliminary agreement has been reached with prosecutors. According to Benham Dayanim, a lawyer for Groupe Bernard Tapie, he has a letter signed by the U.S. attorney’s office that could bring the sale of Full Tilt to fruition.

This may help get gamblers both overseas and in the U.S. get their money back. Dayanim claims thought that, “There’s nothing tremendously fixed in stone. It’s the first step in a process,” Dayanim added. “What it provides is that if the Full Tilt companies agree to forfeit their assets to the United States, the United States will sell those assets to Groupe Bernard Tapie.”

According to Jeff Ifrah, a lawyer for Full Tilt CEO Raymond Bitar, there is a lot to be optimistic about with this deal that will allow the group to pay $80m for the online poker company that has been in a freefall since the DoJ leveled indictments against them.

According to the proposed deal, The Tapie group will pay all players outside the United States, players within the United States would have to file a claim with the Department of Justice. According to Dayanim;

“I’m optimistic that this deal will go forward. This deal offers the surest path toward compensation for players and toward restarting the site as a European-facing poker site.”

Back in October, the European Parliament’s internal market committee adopted a resolution on online gambling. At the time Clive Hawkswood, Remote Gambling Association chief executive committed that

“The most important questions are whether these recommendations will lead to any concrete action and, if so, when. Although a directive is being mooted, there is no legislative action planned at this point and we all know from long experience how fiercely any form of harmonization will be opposed by some Member States.”

On Nov. 16^th the European Parliament voted on and agreed on the online gambling resolution. The Remote Gambling Association came out praising the more progressive parts of the resolution.  Clive Hawkswood again came out with a statement saying in part,

“The European Parliament’s resolution demonstrates a marked change in approach.  It now wants to regulate rather than prohibit and it is pressing the commission to act against member states which unjustifiably restrict access to their gambling markets. The resolution is clear, reminding the commission of its ‘duty to act swiftly upon receipt of complaints about violations of the freedoms enshrined in the Treaties.’ The licensed private remote gambling sector is in full support of those remarks.”

The RGA chief executive concluded his statement by saying;

“There has been a welcome advance in understanding of the licensed remote gambling sector by many MEPs and recognition of the important economic role it plays in stimulating growth and innovation. Fundamentally, however, we should remember that this is a non-legislative process. The next steps in relation to the parliament’s resolution and the commission’s deliberations regarding its Green Paper exercise are unclear. In the meantime, we will continue to work with receptive and forward thinking member states and to press the commission to enforce EU law.”

With one online gambling Congressional meeting done, a house panel plans to look deeper into the issue starting this week. The issue at hand is internet gambling and the efforts to legalize online poker.

The Subcommittee on Commerce, Manufacturing and Trade has set a hearing Nov. 18^th according to officials, there has not been a list of speakers released as of yet.

The last subcommittee session last month talked about legalizing, regulating, and taxing online poker. Currently overseas sites make millions of U.S. players even though the U.S. government is trying to outlaw play.

The Subcommittee chair in the October session was Rep. Mary Bono Mack, R-Calif. And she heard Indian Tribes, coalitions and representatives for both poker players and casino companies. At the time she promised more meetings to hear from state officials and the Commerce and Justice departments.

Poker advocates have called on the House-Senate “supercommittee” on reducing the U.S. debt to add an online gaming initiative among the recommendations.  This as seemed to spark interest and if anything can be read into the many meetings now being called, at least it shows that there is clear movement on online gambling in Congress and possible we are seeing a positive momentum set in.

“I hope to sketch a new road map for the journey ahead.” That is what Brian Sandoval, Governor of Nevada said as he announced that he will be reviving the Gaming Policy Committee at the State Bar of Nevada’s Gaming Law Conference.

The committee is made up of 11 members and their discussions could eventually lead to the making of policy, decisions, regulations and legislation of the gaming industry in Nevada.

Sandoval added that, “We will preserve our position as the gold standard in gaming regulation and in the provision of gaming entertainment. We will be second to none on the globe.”

The Gaming Policy Committee was created in 1961 by then Governor Grant Sawyer, Sandoval actual served as the Chairman of the commission from 1999 to 2001. Though a subcommittee met in 2007, the full group has not met since the 80’s.

Sandoval also announces he has asked Mark Lipparelli, Chairman for the Nevada Gaming Control Board, and Peter Bernhard, Chairman for the Nevada Gaming Commission to join the Gaming Policy Committee and added;

Nevada’s success in capitalising on the emergence of Internet poker will depend on the strength of its leadership as a sophisticated regulator of gaming.

We can only imagine what technology will bring in another ten years and there are policy implications for us in that world of rapid change.

We will examine issues ranging from specific technological devices to the world of the Internet to the impact we may someday see on our tax policy from an infrastructure in a changed cybereconomy in which gamers will not necessarily need to be on the casino floor.

With billions on the line, people like Donald Trump and the major casino companies are rushing to get into the right position to take advantage of if and when the United States regulates online gambling.

The MGM Resorts announced this week their poker alliance with Bwin.Party Digital Entertainment, the company that owns Party Poker, the second largest online poker service worldwide and the World Poker Tour.

Jim Murren, chief of MGM Resorts said in a statement;

“MGM is proud to have bwin.party as our partner as they have the assets and experience that, combined with our brands, can ensure a secure, fair and entertaining online poker experience.”

Of course this is all contingent on an online gambling regulatory regime being started on either a local or state level. This bet on an online regulation seems to be where all the big money is heading. Boyd Gaming also announced it is entered into an online poker alliance with Bwin.Party as well.

According to Jim Ryan, co-chief executive of Bwin.party they have been working on both these alliances for the past 18 months. Bwin.party is slated to own 65% of the proposed joint venture, while MGM will own 25% and Boyd will own 10%. Bwin.Party will also license its technology to both MGM and Boyd so they can offer online poker under their own brands as well.

According to Ryan, “The intention of the joint venture is to take the PartyPoker brand and the World Poker Tour brand and our operating expertise and combine that with the regulatory expertise of MGM and Boyd.  Effectively you will have four brands in the U.S. and all four brands will be acquiring players and putting them in one hub, one poker network.”

The U.S. poker market has been the world’s largest even as the U.S. try’s to curtail as much as it can. Now, the U.S. casino industry has made an about face and is pushing for regulation to regulate online gambling market either on the state or federal level.

The rules for online gambling in Germany are changing and though it seems that Germany is relaxing its grip a little, it is not far enough according to the Remote Gambling Association (RGA) and some of Europe’s largest online gambling operators.

Currently 15 of the 16 German States have a adopted a policy that will follow the French model that taxes all bets at 5%, far lower than the originally planned 16.67%. The total allowed licenses will also increase from the current 7 to twenty.  This seems to come as a direct response from a complaint from the European Commission.

Will this be enough to bring the legal squabbling to a close about Germany’s monopoly run online gambling laws? Not according to Betfair who has stated:

“The detailed opinion of the EU Commission contained several points of contention with the original proposals which have not yet been addressed, and in our opinion the final makeup of the new state treaty in Germany therefore remains uncertain.”

Bwin.Party also issued a statement about the 15 states saying:

“The announcement by the 15 federal prime ministers today is a step forward, but in formulating the final decisions the important thing is find a solution that is in line with market realities and at the same time is compliant with EU law.”

The 16^th state, Schleswig-Holstein, has already passed a different set of online gambling regulations and though that would considered by most to be more in line with what the E.U. was looking for. It was hoped that the other 15 states would follow suit but now it seems the other states have invited Schleswig-Holstein to join in on their deal.

Clive Hawkswood, Chief Executive of the Remote Gambling Association said that:

“The European Commission has repeatedly stated that the draft State Treaty falls foul of EU law and the latest version appears to make little headway in meeting the Commission’s concerns. In fact, such an approach simply makes the Schleswig-Holstein proposal more attractive and creates a fragmented, confusing and undesirable situation for German consumers.”